Case Law Details
Standard Industries Limited Vs DCIT (Bombay High Court)
Bombay High Court held that reopening of assessment under section 148 in absence of any new information received by AO between the date of assessment order u/s 143(3) till the issuance of notice u/s 148 is unjustified and untenable in law.
Facts- The petitioner among others is engaged in the business of trading in the textile goods as also in real estate development. The petitioner owned a free-hold land at Sewree on which it was entitled to transferable development rights (TDR) as per the Development Control Regulations for Greater Mumbai, 1991.
The case of the petitioner is that the revenue from the sale of the TDR was treated as business income and were accordingly offered to tax in the return of income for the assessment year 2012-13, which was selected for scrutiny under order of assessment under section 143(3) of the Act. It was further stated that in the return of income from the assessment year 2014-15, the loss resulting from the reversal of the sale of TDR was treated as the business loss and the deduction thereof was claimed under section 28 of the Act. The return was selected for scrutiny for the assessment year 2014-15, during the course of which the respondent made enquiries into cancellation of TDR sale.
The order of assessment under section 143(3) came to be passed. Subsequently, AO issued notice u/s 148 seeking to reopen the assessment of the AY 2014-15.
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